💸 What are Bailouts?

A bailout is the term used when the government or central bank injects money into a struggling company or bank to prevent its bankruptcy and protect the financial system.

In the U.S., the most famous bailouts occurred in 2008, during the financial crisis, when giants like AIG, Citigroup, and Bank of America received billions to avoid collapse.

The goal is to prevent a domino effect in the market, but these rescues also generate criticism, as the money used often comes from public coffers.